Steady as she goes for Colonial – truck sales ‘healthy’

In a letter to shareholders this week, Gibbons announced the company’s result for the six months to December 2012.

Trading profit after tax of $5.7 million was down 3% on the same period in 2011, but the company says total profit for the period increased 20% to $6.5 million – hit by items such as $400,000 in deferred tax.

Revenue of $298.0 million was up 11%.

The CMC Group sells and services a wide range of vehicles including Case, IH and New Holland tractors, Kenworth and DAF heavy trucks, Suzuki motorbikes, Ford and Mazda cars – plus recently acquired Nissan and Hyundai dealerships.

In the letter Gibbons notes the 2012 market was strong, with a shift in its nature.

“The market continues to shift to SUV’s from large and medium cars,” Gibbons says. “Even though sales grew, supply shortages, especially of the highly successful Ford Ranger, meant that the full potential was missed.”

He also noted the company’s shift into a new brand in the Hawkes Bay.

“In October CMC introduced an additional brand to the group by opening a new dealership, ‘Hawkes Bay Nissan’, in a leased facility on the corner of Heretaunga Street and Tomoana Road in Hastings,” Gibbons says. “It operates the Nissan franchise for all of Hawkes Bay and has made a successful start since opening on October 1, 2012.”

Also reported was the successful and on schedule development of a new workshop facility on Hobill Avenue, Manukau City, for Southpac Trucks.

The site adjoins the existing Wiri Station Road property and consolidates all of Southpac’s Auckland operations onto one location.